Eight Washington State credit unions confirmed their interest Wednesday in piloting a co-op campaign to offer prize-linked savings accounts to members starting early in 2012. That follows last May’s enactment of a new enabling law allowing monthly drawings and cash prizes for account openings.
Under the arrangement, the prize pool will be funded by credit unions “so the money invested in the savings accounts stays in the accounts,” noted the Northwest Credit Union Association.
“Most of the credit unions planning a possible launch are small to medium-sized,” noted NWCUA, adding that these CUs expect to “reach out to larger credit unions to bring on their participation and bring down the administrative costs.”
Meanwhile, Doorways to Dreams, the Boston-based non-profit that promotes the Save to Win package debuted two years ago by the Michigan Credit Union League, said 42 CUs have now opened 16,000 accounts “with savings of over $28 million.”
D2D said it will be hosting its first Prize-Linked Savings Conference Nov. 18 in Boston bringing together public policy makers, researchers and legal experts to discuss the future of the program and ways to motivate innovative models on a national scale.
